2025-10-02
Yesterday the 8th Circuit published an opinion reversing the Tax Court's decision in 3M Company v. Commr., 160 T.C. 50 (2023). The 8th Circuit concluded that the IRS could not reallocate royalty income from a Brazilian subsidiary over the amount limited by Brazilian law. The facts were very similar to Procter & Gamble Co. v. Commr., 961 F.2d 1255, 1259 (6th Cir. 1992).
We created a chart of the case.
(I had skipped reading the 346-page Tax Court opinion. The 15-page 8th Circuit opinion was much more manageable.)
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